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Legislative Update – NC HB 165

As many of you are aware, a Committee in the North Carolina House of Representatives is requesting passage of HB 165 which would impose far reaching restrictions and regulations on North Carolina homeowners associations and the Executive Boards that govern them.  The bill has been referred to the Judiciary Subcommittee A for consideration by its members and a recommendation to the floor of the House of Representatives.  We expect the Committee may be taking action on the bill within the next 7 days.  It is urgent that all those who are concerned and opposed to the further regulation and restriction of Homeowners Associations let their voices be heard now.  While it is important for them to hear the concerns of managers and attorneys, it is also very important that they hear from the men and women who serve as directors of associations.

We are writing to let you know that HB 165 is under consideration and to urge you to contact members of the House of Representatives to express your concerns and opposition to the further regulations and restrictions on North Carolina Community Associations.  Opposition has already been expressed by North Carolina realtors, home builders, and by the North Carolina Bar Association, who believe the bill goes too far by seeking to impose comprehensive regulations and restrictions on Associations in an attempt to deal with random incidents of inappropriate action by associations and boards which can be adequately addressed under existing law.

We urge you to contact the following:


1)     Members of the House Judiciary Subcommittee A who are considering HB 165 at this time.  Those members and their email addresses are:


Rep. John Blust, Chairman                            john.blust@ncleg.net

Rep. Martha Alexander  (Mecklenburg)         martha.alexander@ncleg.net

Rep. Hugh Blackwell                                      hugh.blackwell@ncleg.net

Rep. Jim Crawford                                         jim.crawford@ncleg.net

Rep. Leo Daughtry                                         leo.daughtry@ncleg.net

Rep. Bill Faison                                              bill.faison@ncleg.net

Rep. Larry Hall  (Bill Sponsor)                       larry.hall@ncleg.net

Rep. Julia Howard  (Bill Sponsor) (Iredell)    julia.howard@ncleg.net

Rep. Darren Jackson                                       darren.jackson@ncleg.net

Rep. Ric Killian,   (Mecklenburg)                   ric.killian@ncleg.net

Rep. Chuck McGrady                                     chuck.mcgrady@ncleg.net

Rep. Grey Mills (Iredell)                                 grey.mills@ncleg.net

Rep. Shirley Randelman                                 shirley.randelman@ncleg.net

Rep. Deborah Ross                                         deborah.ross@ncleg.net


Two sponsors of HB 165 are on this committee.  We have also noted members of the Committee who are from our area.  You can let those members know that you are from their county.


2)      We urge you to contact the leadership of the House of Representatives.  They are:


Rep. Thom Tillis (Mecklenburg), Speaker                              thom.tillis@ncleg.net

Rep. Dale Folwell, Speaker Pro Tempore                               dale.folwell@ncleg.net

Rep. Paul Stam, Majority Leader                                           paul.stam@ncleg.net

Rep. Ruth Samuelson (Mecklenburg), Majority Whip           ruth.samuelson@ncleg.net

Rep. Pat McElraft, Deputy Majority Whip                            pat.mcelraft@ncleg.net

Rep. Jonathan C. Jordan, Deputy Majority Whip                  jonathan.jordan@ncleg.net


3)      Contact the members of the House who represent you and your community.  The following is a link to the page that shows all of the members of the House of Representatives and the counties they represent.





All House members can be reached by phone at 919-733-7928.  Because of the time sensitive nature of this matter, members should be contacted by phone and/or email.


As you contact and communicate with these representatives, please remain respectful and courteous.  Our legislative process encourages citizens to be heard on matters of concern.  State your concerns and objections as clearly and concisely as possible.  If you are writing your representative or a representative with whom you have some personal connection, it is appropriate to let them know that.  If you oppose HB 165, it is important that you let these men and women who will be making the final decision know that now.


The following is a link to HB 165 in its entirety.  The bill is 22 pages long. The first half provides amendments to the Planned Community Act (47F).  The second half provides similar amendments for the Condominium Act (47C). Click on Edition 1.




The following are some of the major restrictions and regulations contained in the bill and are presented generally in the order they appear.  


·       Regardless of your governing documents, the statutory budget ratification process will apply to all associations and will be applied to any special assessment passed.  The only exception made is for special assessments that are “necessary to respond to an emergency” and if the Board passes a special assessment in an emergency situation, it must notify all owners promptly of the action.


·       If a Board does not act within 30 days to call or request a special meeting, the requesting members may give notice of the meeting on their own at the time and place of their choosing. 


·       Meetings of the association and the Executive Board may be conducted by telephonic, video, or other conferencing process but the Association must provide a way for all lot owners to participate and comment at every meeting.


·       All members must be allowed to attend all meetings, including all Executive Board meetings (except when limited sensitive matters are discussed) and all lot owners must be given an opportunity “to comment regarding any matter.”  If sensitive matters are considered in “Executive Session,” no final vote or action may be taken in that Executive Session.  All Executive Board meetings must be either at the community or at a place convenient to the community so that all members may attend if they wish.


·       Unless a meeting is included in a schedule given to all lot owners, notice of every Board meeting must be sent to each Board member and to all lot owners.  That notice must be given not less than 10 days nor more than 60 days before the Board meeting and must state the time, date, place and agenda of the meeting.


·       If materials are distributed to the Executive Board before the meeting, the same materials must be made “reasonably available to all lot owners” at the same time.


·       The Executive Board may not act on unanimous consent any longer as allow by our non-Profit Corporations Act except to undertake “ministerial” actions or “to implement actions previously taken at a meeting.”  If the Board does act by unanimous consent on these limited matters, notice must promptly be given to all lot owners. 


·       Regardless of the provisions of the governing documents regarding payment, all associations must offer to accept payment of any delinquent balances in installments and payment plans may not include late charges. 


·       Regardless of the provisions of the governing documents, a claim of lien cannot be filed until assessments have remained unpaid for at least 90 days.  Foreclosure may not be commenced unless an owner has failed to accept or comply with the installment payment plan all Associations offer to all delinquent owners.


·       Associations will be required to apply payments made first to unpaid assessments, then to late charges associated with assessments, then to attorney’s fees and collection charges, and finally to fees, fines, interest and associated late fees.


·        Unless a transfer is within certain limited categories, all sellers must provide all purchasers with complete copies of documents relating to the community and to the property sold, as well as a certificate containing 16 different categories of information relating to Association finances, insurance and the legal affect of the governing documents on potential purchasers.  While this obligation is placed on the seller, the Association must furnish the seller with all of the information the seller needs to comply with these extensive disclosure requirements. 


Attachments: Letter template to send to your representative

*These articles and related content on this website are provided without warranty of any kind and in no way constitute or provide legal advice. You are advised to contact an attorney in Association Management for legal advice related to your specific issue and community. Some articles are provided by third parties and online services. Display of these articles does in no way endorse the products or services of Community Association Management by the author(s).